Adani Green, TotalEnergies form 50:50 JV; to invest $300 mn

The renewable energy arm of Adani Group, Adani Green Energy Ltd (AGEL), and France-based oil and gas major TotalEnergies have entered into a binding agreement to create a new JV, equally owned by both, with a 1,050 MW portfolio.

The portfolio will comprise a mix of already operational (300 MW), under construction (500 MW), and under development assets (250 MW), with a blend of both solar and wind power.

AGEL will contribute to assets to the JV and TotalEnergies an equity investment of $300 million, a statement says.

Both Adani Green and Total will hold 50:50% of the paid-up equity share capital of the new JV. They each hold 50:50% of the paid-up equity share capital of AGE23L. Total, through its affiliate entities, holds 19.75% shareholding in AGEL.

"TotalEnergies will reinforce its strategic alliance with AGEL and support the company in becoming the Indian leader of renewable energy, with a target of 45 GW renewable power capacity by 2030," the company says in a stock exchange filing.

Adani Group chairman Gautam Adani says the investment will strengthen AGEL's role in India’s glide path to decarbonisation. "This will help deliver our vision to have 45 GW renewable energy capacity by 2030,” says Adani.

According to TotalEnergies’ chairman and CEO Patrick Pouyanné, the company has been actively developing, via AGEL, its presence in the Indian renewable power market. "A very interesting market by its size and growth and the early development of a merchant market."

Pouyanné says after its first joint venture AGEL23 in 2020 and the acquisition of shares in AGEL in 2021, the new JV with AGEL will enable it to "speed up development" through direct access to a large portfolio of assets. "The completion of the transaction shall be upon satisfaction of customary closing conditions including the receipt of certain regulatory approvals."

Adani Green Energy claims to have one of the world’s largest renewable portfolios, with locked-in growth of 20.4 GW across assets, catering to investment-grade counterparties.

The Adani Green Energy stock closed 0.18% down at Rs 1,002.70 on the BSE today amid a weak broader market. The stock plunged to an intra-day low of Rs 989.15 during the day. At the current share price, the m-cap of AGEL stands at Rs 1,60,383.29 crore.

Last month, a subsidiary of the renewable energy producer received a commercial operational date certificate from Solar Energy Corporation of India (SECI) for solar PV cells and solar PV modules manufacturing plant in Mundra, Gujarat. The plant, owned by Mundra Solar Energy, has a capacity of 2.0 gigawatt per annum. Adani Green Energy holds 26% shares of Mundra Solar via its wholly-owned subsidiary Adani Renewable Energy Holding Four Limited (AREH4L).

Adani Green Energy reported a 50.93% growth in consolidated net profit to ₹323 crore in the April-June quarter of FY23, compared with ₹214 crore in the same quarter last year. Its revenue surged 41.3% to ₹2,404 crore from ₹1,701 crore in the corresponding quarter last year.